Microsoft’s TikTok deal will bring about further challenges for the company according to the company’s co-founder and philanthropist, Bill Gates.

In an interview with the Wired , Bill Gates compared the deal to a poisoned chalice, stating that it will bring about “big issues” for Microsoft. “Who knows what’s going to happen with that deal. But yes, it’s a poison(ed) chalice. Being big in the social media business is no simple game, like the encryption issue,” Gates said as quoted by the Wired .

When asked about Microsoft’s entry into the social media “game,” Gates said that the company will have to delve further into content moderation. He further added that it will be a good thing as Microsoft’s entry into social media would mean further competition for Facebook. “The game being more competitive is probably a good thing. But having Trump kill off the only competitor, it’s pretty bizarre,” Gates said.

Microsoft is currently in talks with ByteDance to purchase its US operations. However, things have been further complicated as after President Donald Trump on Friday signed an executive order banning transactions with ByteDance after Spetember.

“Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States,” Microsoft had said in a blog post on August 2.

TikTok ban

Trump, on Friday, told reporters that it will need the companies to come up with a deal that benefits the US Treasury as well for the deal to be approved. The deadline provided for the companies to put forth a proposal is September 15. After that, the ban on ByteDance will come into effect.

"I said a very substantial portion of that price is going to have to come into the Treasury of the United States because we're making it possible for this deal to happen," Trump had said

“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” Microsoft had said.

“Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020. During this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President,” it said.

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